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Discover Financial Services is a credit services business based in the US. Discover Financial Services shares (DFS) are listed on the NYSE and all prices are listed in US Dollars. Discover Financial Services employs 17,600 staff and has a trailing 12-month revenue of around USD$6 billion.
|52-week range||USD$22.56 - USD$100.4968|
|50-day moving average||USD$92.6871|
|200-day moving average||USD$75.2465|
|Wall St. target price||USD$107.56|
|Dividend yield||USD$1.76 (1.82%)|
|Earnings per share (TTM)||USD$3.596|
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Valuing Discover Financial Services stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Discover Financial Services's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Discover Financial Services's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 27x. In other words, Discover Financial Services shares trade at around 27x recent earnings.
That's comparable to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29).
Discover Financial Services's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.3557. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Discover Financial Services's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
|Revenue TTM||USD$6 billion|
|Operating margin TTM||26.71%|
|Gross profit TTM||USD$5.4 billion|
|Return on assets TTM||1.01%|
|Return on equity TTM||10.03%|
|Market capitalisation||USD$29.9 billion|
TTM: trailing 12 months
There are currently 3.4 million Discover Financial Services shares held short by investors – that's known as Discover Financial Services's "short interest". This figure is 38.6% down from 5.5 million last month.
There are a few different ways that this level of interest in shorting Discover Financial Services shares can be evaluated.
Discover Financial Services's "short interest ratio" (SIR) is the quantity of Discover Financial Services shares currently shorted divided by the average quantity of Discover Financial Services shares traded daily (recently around 3.1 million). Discover Financial Services's SIR currently stands at 1.11. In other words for every 100,000 Discover Financial Services shares traded daily on the market, roughly 1110 shares are currently held short.
However Discover Financial Services's short interest can also be evaluated against the total number of Discover Financial Services shares, or, against the total number of tradable Discover Financial Services shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Discover Financial Services's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 Discover Financial Services shares in existence, roughly 10 shares are currently held short) or 0.0111% of the tradable shares (for every 100,000 tradable Discover Financial Services shares, roughly 11 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Discover Financial Services.
Find out more about how you can short Discover Financial Services stock.
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Discover Financial Services.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 28.56
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Discover Financial Services's overall score of 28.56 (as at 01/01/2019) is pretty good – landing it in it in the 39th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Discover Financial Services is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Environmental score: 7.61/100
Discover Financial Services's environmental score of 7.61 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that Discover Financial Services is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 19.64/100
Discover Financial Services's social score of 19.64 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that Discover Financial Services is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 16.82/100
Discover Financial Services's governance score puts it squarely in the 8th percentile of companies rated in the same sector. That could suggest that Discover Financial Services is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Controversy score: 1/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Discover Financial Services scored a 1 out of 5 for controversy – the highest score possible, reflecting that Discover Financial Services has managed to keep its nose clean.
|Total ESG score||28.56|
|Total ESG percentile||38.78|
|Environmental score percentile||8|
|Social score percentile||8|
|Governance score percentile||8|
|Level of controversy||1|
Dividend payout ratio: 44.64% of net profits
Recently Discover Financial Services has paid out, on average, around 44.64% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.82% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Discover Financial Services shareholders could enjoy a 1.82% return on their shares, in the form of dividend payments. In Discover Financial Services's case, that would currently equate to about $1.76 per share.
While Discover Financial Services's payout ratio might seem fairly standard, it's worth remembering that Discover Financial Services may be investing much of the rest of its net profits in future growth.
Discover Financial Services's most recent dividend payout was on 4 March 2021. The latest dividend was paid out to all shareholders who bought their shares by 17 February 2021 (the "ex-dividend date").
Over the last 12 months, Discover Financial Services's shares have ranged in value from as little as $22.56 up to $100.4968. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Discover Financial Services's is 1.7828. This would suggest that Discover Financial Services's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).
Discover Financial Services, through its subsidiaries, operates as a digital banking and payment services company in the United States. It operates in two segments, Digital Banking and Payment Services. The Digital Banking segment offers Discover-branded credit cards to individuals; and other consumer products and services, including private student loans, personal loans, home loans, and other consumer lending, as well as deposit products, such as certificates of deposit, money market accounts, IRA certificates of deposit, IRA savings accounts, checking accounts, and sweep accounts. The Payment Services segment operates the PULSE network, an automated teller machine, debit, and electronic funds transfer network; Diners Club International, a payments network that issues Diners Club branded charge cards and/or provides card acceptance services; and Discover Network that processes transactions for Discover-branded credit and debit cards, as well as provides payment transaction processing and settlement services. The company was incorporated in 1960 and is based in Riverwoods, Illinois.
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